<\/p>\n
The research, published Friday, shows that countries experiencing a coup typically see economic growth decline by about 2.3 percentage points in the same year. The effects are not short-lived, with the study finding that economic damage can persist for several years after the event.<\/p>\n
<\/p>\n
The findings come amid a recent surge in coups, especially in sub-Saharan Africa, where political instability continues to undermine development efforts. According to the report, countries that have experienced coups since 2022 recorded average growth rates of around \u20133%, compared with 4.5% in countries that remained politically stable.<\/p>\n
<\/p>\n
The IMF said the long-term consequences are particularly concerning. Over a five-year period, economies affected by coups experience around five percentage points lower cumulative GDP growth than more stable peers, highlighting the enduring impact on development trajectories.<\/p>\n
<\/p>\n
The study attributes much of the economic slowdown to declines in investment and private consumption. Political uncertainty tends to deter both domestic and foreign investors, leading to reduced capital inflows and stalled projects. At the same time, weakened consumer confidence can limit spending, further slowing economic activity.<\/p>\n
<\/p>\n
The impact is often compounded by international sanctions imposed in response to unconstitutional changes in government. The report found that countries facing sanctions alongside coups may see growth fall by more than four percentage points, as restrictions on trade, financial flows and international cooperation take effect.<\/p>\n
<\/p>\n
The IMF said African economies are particularly vulnerable to these shocks. The effects of coups tend to be more pronounced and longer-lasting in sub-Saharan Africa due to structural challenges such as weaker institutions and limited capacity to absorb economic disruptions.<\/p>\n
<\/p>\n
Low-income countries, many of which are on the continent, face even greater risks. With limited fiscal space and fewer policy tools available, these economies are less able to cushion the fallout from political instability.<\/p>\n
<\/p>\n
The report highlights the importance of preventing political instability as a key condition for sustained economic growth. It also suggests that in the aftermath of such events, policymakers should focus on restoring investor confidence, stabilising financial systems and supporting households to mitigate economic damage.<\/p>\n
<\/p>\n
The IMF concludes that coups are not only political crises but also major economic shocks, with long-term consequences for growth, investment and poverty reduction.<\/p>\n
<\/p>\n
–IMF\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":35799,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-36507","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Political instability, particularly coups d\u2019\u00e9tat, is having a severe and lasting impact on economic growth in Africa and other developing regions, according to a new study by the International Monetary Fund (IMF).","published_date":"","news_description":"Political instability, particularly coups d\u2019\u00e9tat, is having a severe and lasting impact on economic growth in Africa and other developing regions, according to a new study by the International Monetary Fund (IMF).","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/36507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/36507\/revisions"}],"predecessor-version":[{"id":36508,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/36507\/revisions\/36508"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/35799"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=36507"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=36507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}